SB 590

Abstract

Advanced recycling; incentives in income tax, sales tax, and machinery and tools tax. Postpones from 2020 to 2025 the sunset date of the income tax credit for purchase of equipment for processing recyclable materials. Starting in taxable year 2020, the bill makes eligible for the credit purchases of equipment used in advanced recycling, defined in the bill. The bill provides that certain machinery, tools, and materials used in advanced recycling shall be exempt from sales tax. Starting in taxable year 2021, the bill provides that such machinery, tools, and materials shall be segregated and classified as machinery and tools, which are taxed at a lower rate than the generally applicable personal property tax rate. This bill incorporates SB 789.

Advanced recycling; incentives in income tax,sales tax, and machinery and tools tax. Postpones from 2020 to2025 the sunset date of the income tax credit for purchase of equipmentfor processing recyclable materials and makes eligible for the creditpurchases of equipment used in advanced recycling, defined in thebill. The bill increases the dollar value of the credit from 20 percentto 100 percent of the purchase price of such equipment, eliminatesthe requirement that a taxpayer may only claim up to 40 percent ofhis tax liability in credit per year, and makes the credit refundableand transferable for credits issued starting in taxable year 2020.The bill provides that certain machinery,tools, and materials used in advanced recycling shall be exempt fromsales tax. The bill provides that such machinery, tools, and materialsshall be segregated and classified as machinery and tools, which aretaxed at a lower rate than the generally applicable personal propertytax rate.